C Corp or LLC as member of LLC to hold property (rental)
Hi guys, I have consulted a couple of asset protection/tax professionals and each have different ways of trying to structure my asset protection/tax strategies, which made everything more confusing.
1st scenario is this:
1. Form LLC to hold rental prop using myself and a C corp (me being 100% shareholder of C corp) as members of the LLC. So 2 members.
2. Then I use the C corp as the "manager" of the LLC. Meaning the LLC will pay the C corp a management fee.
3. Then I give myself a minimal salary from the C corp for services rendered.
So this means I have two types of income. One from the LLC as a pass-through then another from a C corp as salary.
2nd scenario:
1. Form single member LLC (me being the member)
2. Then create other LLCs to hold the properties, using the original LLC as the manager/member of all the other LLCs. I basically don't even put myself as a member of all the other LLCs, which means all the LLCs that hold property will all be single member LLCs.
So where do I get my income? Will it come from the original LLC since I'm the member there? Since the original LLC is the manager/member of the other LLCs that hold property, how does it get taxed now since it is not a person who owns it?
These are the 2 scenarios that were presented to me by two different attorneys I spoke with.
What do you guys think of each setup from an asset protection and tax savings point? Would be interesting to hear people's thoughts on this...
Thanks!
Alex